Recent research conducted by Encompass Corporation has revealed concerning trends regarding corporate treasurers’ dissatisfaction with banking applications.
The study found that an alarming 87 per cent of corporate treasurers have abandoned banking applications due to lengthy and inefficient onboarding processes. This issue not only affects banks but also has a significant impact on businesses, with 86 per cent of treasurers reporting revenue loss directly linked to banks’ slow and disjointed approach to acquiring customer information.
These findings, obtained through a survey conducted by Encompass in collaboration with independent polling agency Censuswide, involved 250 corporate treasurers across the UK and US. The survey explored various aspects of banking processes, including Know Your Customer (KYC) onboarding practices, customer outreach, and overall experiences with financial products and services.
One notable revelation is the dissatisfaction among treasurers with their bank’s KYC process, with 73 per cent expressing discontent. This dissatisfaction is particularly pronounced in the UK, where 80 per cent of respondents are dissatisfied compared to 66 per cent in the US.
Alex Ford, President of North America at Encompass Corporation, emphasized the detrimental impact of outdated banking practices on modern economies. Ford stressed the urgent need for banks to adopt Corporate Digital Identity (CDI) technology to streamline client onboarding processes. She highlighted that CDI, which integrates corporate information with public and private data sources, can significantly enhance verification and validation processes, ultimately improving customer experience and boosting banks’ future growth.
The research also revealed the inefficiency of existing banking processes, with 93 per cent of respondents reporting being asked for the same information multiple times by banks. Additionally, 56 per cent had to deal with repeated requests for identical details. On average, it takes businesses 41 days to open a new banking account, underscoring the need for expedited and efficient onboarding procedures.
Wayne Johnson, co-founder and CEO of Encompass Corporation, emphasized the transformative potential of CDI in the banking industry. Johnson addressed the longstanding issue of friction during outreach, which has hindered banks’ ability to onboard customers efficiently. He urged banks to embrace CDI as the future of the industry, enabling quicker verification and data sharing, surpassing previous human-led approaches.
These findings highlight the urgent need for banks to modernize their onboarding processes to meet evolving customer expectations and enhance operational efficiency.
source: fintech.global
